entreprenurship/ feasability study

Institution:

School:

Faculty:

Course: Entrepreneurship

Paper: Business model and feasibility study

Lecturer: Ms

Business Partners: Delroy Garrison (1302843)

Remarks:  “Success doesn't necessarily come from breakthrough ideas but from flawless execution.”

Introduction

Our proposed business idea came about by examining aspects of life that it is rather vital to existence we figures that one of the most valuable possession anyone has is their health and as such they will do whatever it takes to preserve it; and we plan our business is to assist the general public to do just that. as we deliberated we came to the conclusion that Starting our own pharmacy, medical courier service and specialised transportation service is a great way of easing into the world of entrepreneurship. Our business is that of a partnership company, it comprises of four shareholders, namely; Mikaliah Holt, Johnoy Hammond, D’Vaughn Davis and Delroy Garrison. The most fitting name for our business is carry-meds as we do just what our name suggests. Home delivery isn’t just for newspapers, clothing and gifts on wedding registries anymore Carry-meds will form alliances with medical practitioners (doctors, dentists, psychiatrists, obstetricians etc.) both those with private practice and those that practice publicly, insurance companies, big drugstore chains and independent local pharmacies to provide these services, which has never been offered in Jamaica but will become more widely available as time progresses being a focus of our companies’ marketing efforts. Our company will make it possible for Jamaicans to have medications mailed or delivered to wherever they live. Our first and main operation office and pharmacy will be located at in Kingston Jamaica. The head office will be located at ________________ and our website is www.carrymeds.com. And email carry_meds@cw.jm

Business objectives

At the end of this study we would want to:

Ø  Know the future prospects of our business; weather it has the potential to be successful or not.

Ø  Find out if the market is ready for a service like ours.

Ø  Find out which location is more accessible to consumers.

Ø  know Who our prospective customers are, their age range, occupation and address  

Ø  say if our company will be able to break into the market by analysis of existing completion

Ø  Identify what price the consumers are comfortable at to pay for our service.

Ø  identify the specific needs of the populous with respect to our value proposition

Ø  know Which of the services we offer seem most attractive to prospective customers

Ø  know If  the delivery of medical supplies is an idea that is welcomed by the populous

Ø  estimate much revenue projections

Ø  Predict the amount of time until the company breaks even and determine whether a proposed project will be profitable.

Ø  Be aware of the possible logistical issues

Ø  Determine facility needs and sustainability of operations

Ø  Estimate the total capital requirements

Ø  Legal feasibility and requirements

Ø  To define our target market, their Demographics, psychographics, lifestyle, education level etc.

Ø  identify the nature of our competition , who they are and their strength and weaknesses

Business Overview:

With so much to consider and so much at stake, you need a pharmaceutical courier and pharmaceutical distribution partner that understands and provides smart solutions for your important pharmaceutical products. We provide bar code scanning, proof of delivery, and real-time data – all of which have a dramatic influence on reducing lost items, increasing efficiency, and improving customer relations. Using for state-of-the-art tracking software giving us visibility into every item at each stage of its delivery. Drivers are also able to record delivery confirmation on mobile devices using the signature capture feature.

We are most suitable to be your medical equipment supplier and pharmaceutical courier, we understand the industry's regulations for transporting, delivering, and warehousing. Employee training and proper equipment are all part of the pharmacy, transportation and courier services we offer. The highest level of security is provided when transporting and delivering your goods (medical supplies/pharmaceuticals) to their destination. Our proven process ensures all documentation is complete and compliant. There is no need to worry about damage or contamination to goods since climate control and other packaging, transport, and storage requirements are all built into our pharmaceutical courier services. Gain confidence when you entrust your consignments to us, because we have the knowledge, capability, and procedures in place to respond to and fulfil your requirements 24/7, 365 days a year. 

Population and sample

Carry-meds seeks to provide well needed services and products that everyone in Jamaica will benefit from; especially, those that suffers from chronic illnesses, persons with disabilities, the elderly and others that are most vulnerable in our society. The Demography would incorporate all age group, marital status, Income range, Occupation, Gender, Geographic region or any other category as long as they have a need for any of the services we offer. The Psychographic Attitudes which we targeted were the need for pharmaceuticals and other medical supplies, also our prospective customers are people from any societal class with any Spending Behaviors, ethics and morals beliefs and every other Psychographic Characteristic.

The sample chosen was mainly adults of the working class. The bulk of the sample was taken from the major town areas in and around the corporate area, namely; Half Way Tree, Papine, New Kingston, and Downtown Kinston. The Sample was selected through both non-random and stratified-random. Our stratified-random selection of sample involved dividing the population into smaller groups known as strata. While sampling, the strata were formed based on members' shared attributes or characteristics. A random sample from each stratum was taken in a number proportional to the stratum's size when compared to the population. While in our non-random sampling the sample was chosen through a specific selection process; upon entering a business or place of employment questionnaires were handed out where convenient and in other cases quick question and answer session were held with interested individuals. This was done in order to obtain effective answers which gives credible results we targeted those that seemed knowledgeable and informed. The use of these two sampling methods was to incorporate people from all persuasion even though we have a target market.

Methodology

This project utilized both quantitative and qualitative data collection tools.

Data collection consisted of an oral survey, questionnaire and interviews with individuals from general public. Initially, we uses and oral survey instrument to measure the readiness of the market for our particular service. A purposeful and specific sample was identified to participate in the short interview; this data collection instrument to ensure the data received is current and valid. A structured questionnaire was done to gather more information from randomly selected individuals. The goal was to issue questionnaires to approximately 20 participants from each locations stated previously. These individuals embodies the variety of identities, personalities, viewpoint, different social class and structures in Jamaica. When these questionnaires were answered we used the information to help in the decision making process to answer most of the questions that the business need solutions for in order to be successful. Upon collecting the qualitative data derived from said interviews and the surveys, careful analysis was done with the data to prepare a SWOT (strengths, weaknesses, opportunities, and threats) to analyze how to best customize the business for the targeted populations.

Findings

The Questionnaire consists of twenty (22) questions and had a mixture of open and closed-ended questions. From the analysis of data, the findings were as follows:

Exactly 50% of the respondents where women and belonged to the 29-39 age group and 98% of are employed. While the other 50% are men of all ages 64% of whom were employed. This shows that women are our best target as they are the one that usually handle the affairs of the family.

The respondents were evenly distributed between gender, where; 50% of the respondents were male and 50% of the respondents were female.

Twenty percent (20%) of the respondents were between the age s of 18-28, while 20% of the respondents were between the ages of 29-39 while another 30% of the respondents were between the ages of 40-49 and the remaining 30% of the participants were 50 years and older.

 Eighty percent of the respondents stated that they themselves have a chronic illness or a disability or they know of someone with a chronic disease or disability. While the remaining 20% of the respondents stated that they themselves do not have a disability and neither do they know of anyone with a disability.

Twenty percent of the respondents said they visit the doctor weekly, while another 20% of the respondents said they visit the doctor bi-weekly, while 40% of the respondents said they visit the doctor monthly and the remaining 20% of the respondents chose the option other stating that they do not visit the doctor, weekly, bi-weekly or monthly.

From the participants who stated that they have a chronic disease or has a disability 80% of them said they require a constant supply of medical equipment and 20% of them stated that they do not require a constant supply of medical equipment. From the respondents who stated that they require a constant supply of medical equipment none of them said they require equipment weekly however, 20% said they require equipment bi-weekly, while 60% said monthly and the remaining 20% chose the option other.

 Ten percent of the respondents stated that they spend fifteen minutes on average in a pharmacy, while 60% of the respondents spend 30 minutes on average in a pharmacy, another 20% of the respondents spend on average 45 minutes in a pharmacy while 10% of the respondents spend over an hour. A gross majority of the respondents (90%) believe pharmaceuticals are too expensive while only 10% of the respondents believe pharmaceuticals are not too expensive.

Majority of the respondents (90%) believes they are not given adequate privacy when they are filling a prescription, while 10% of the respondents believe they are given adequate privacy when filling a prescription.

Interestingly, One hundred percent of the respondents believe that ordering medical equipment online will be cheaper than to buy them in Jamaica.

Eighty percent of the respondents stated that they would use an on-call transportation service to take them to the doctor while 20% of the respondents said they would not use an on-call transportation service to take them to the doctor.

Do you have health insurance?  Seventy percent of respondents hand health insurance while the remaining 30% was without.

Eighty percent of respondents stated that it is very possibility that they may use carry-meds to have your prescription filled and delivered to their home while 8% said it was possible, 10% was not sure and 2% said impossible

Seventy five percent of respondents believed our business idea was very different from those existing, 21% sated that it was just different and 4% thought it was similar being asked how our business idea does and its stated services compare to what already exists.

Analysis of Results

Product Characteristic: We are planning to provide a service but incorporate the reselling and rental of Books and Other Stationary supplies. We will not just limit our business to face to face interaction but the major piece and the aspect that will make our business unique is conducting transaction through the internet which will provide our consumers the comfort and convenience of not having the added burden of going to the place directly. We are only giving our consumers products of high quality and standards.

Market Analysis: We are targeting the entire population in the Port more, Half-way Tree, Downtown and surrounding areas we are anticipating that as soon as we are open we will attract and get the school population, University of Technology students in particular and will expand overtime due to the good service we provide. The major threat is all the well-known bookshops in and around the area which will attract consumers more but with proper promotion we can achieve the market share.

Sales Analysis:  We are anticipated that potential customers are about roughly ten (10) per week for rental and about five (5) for sale in the first month but will increase in time. We suspected far more in the summer because it’s back to school period and during the Christmas because books are very good gifts but during spring and autumn we do not expect a lot of sales because it’s not peak period.

Customer Analysis: We suspect that our buyers will be individual buyers and not industrial buyers. As I stated above persons of  all age, income group, gender, marital status, interest, lifestyle, buying habits etc. we will satisfy there needs through market research; knowing what they want and providing it and just being in constant contact with consumers to see if and when interests change so we can satisfy them.

Promotion and Advertising: The most effective way to inform further customer is via filers, sales promotion, radio and through the internet.

These are the steps we will undertake in our promotional strategy:

Ø  We are planning to issue filers in Half-way Tree and Downtown area,

Ø  Advertise over the radio

Ø   Through the internet example Facebook this methods is a great tool to attract the younger generation.

Ø  Offer sales promotion by selling some books cheap for a certain period.

The Book Express Company” will be sponsoring events in order to for potential customers to get familiar with us. We also plan to network and do follow-up with our clients in order to keep them and get more. Once we have spoken with our client it is important to follow up by mail or email, if only to confirm with them the items you discussed. This also sets the tone for further talks and reminds them that they are important to us. A great sales pitch consists of not only showing the prospect your product but we are also selling ourselves.

 We are going to do this through mass advertising, invading the market at once so individuals will be notified about our product at every location. This will make individuals more informed and aware about our service.

Pricing Strategy: We are planning to rent books for two thousand five hundred ($2000) per month with a collateral to ensure we get back the books we rent but we can’t plan the suspected cost per book because it depends on the book type and original cost. To attract customers we will use Market penetration this when we set the product at a lower cost and then increase overtime and during off peak season we will use Product Bundle Pricing this is when we bundle different product and price the bundle at a reduce cost example group books and some stationary and sell it cheaper than buying it individually.

Our Price Adjusting Strategies include discount and allowance pricing at certain periods and to certain customers during summer for example students with I.D get 5% discount on the items they purchase and Promotional Pricing will be used during Customer Appreciation Periods “goods sold cheaper.”

Competition: Our main competitions are Kingston Bookshop and Sangters Bookshop but the market has a mixture of fragmented and concentration sellers because other than the bookshops stated above there are other book shops in and around the area.

The main competitors have most of the market share up to 85% and there competitive advantage is their brand name, when they have brand name customers gravitate towards them because the assume they have quality products and can afford to rent better location and can sell goods cheaper if desired but the weakness of these business is they are usually more expensive because they have brand name and hold majority of the market share, I am planning to compete with all bookstores either big or small and our competitive edge will be offering our service via the internet not only advertising but actually conducting transaction through this medium.

Accounting Balance Sheet and Cash Flow Projection              

Annual Financials for Carry- Meds Pharmacy.

Assets

Fiscal year is January-December. All values USD millions.	2015	2016	2017	2018
Cash & Short Term Investments	143000	142000	138000	418000
Cash Only	143000	141000	138000	409000
Short-Term Investments	400000	500000	500000	880000
Total Accounts Receivable	493000	605000	647000	873000
Accounts Receivables, Net	493000	605000	647000	873000
Accounts Receivables, Gross	511000	624000	672000	899000
Bad Debt/Doubtful Accounts	(182000)	(189000)	(243000)	(256000)
Other Receivables	0	0	0	0
Inventories	107000	100500	107600	110500
Finished Goods	107000	100500	107600	110500
Work in Progress	0	0	0	0
Raw Materials	0	0	0	0
Progress Payments & Other	-	-	-	-
Other Current Assets	65500	108000	124000	137000
Miscellaneous Current Assets	65500	108000	124000	137000
Total Current Assets	1771000	1859000	1985000	2533000

	2015	2016	2017	2018
Net Property, Plant & Equipment	832000	847000	863000	862000
Property, Plant & Equipment - Gross	1428000	154000	1631000	1741000
Buildings	227000	240000	261000	269000
Land & Improvements	125000	130000	143000	146000
Computer Software and Equipment	75700	110000	123000	152000
Other Property, Plant & Equipment	287000	302000	311000	332000
Accumulated Depreciation	596000	693000	767000	879000
Total Investments and Advances	-	-	-	-
Other Long-Term Investments	-	-	-	-
Long-Term Note Receivable	0	0	0	0
Intangible Assets	3545000	3633000	3615000	3607000
Net Goodwill	2567000	2646000	2640000	2654000
Net Other Intangibles	978000	987000	975000	953000
Other Assets	68800	116000	128000	149000
Tangible Other Assets	68800	116000	128000	149000
Total Assets	6217000	6454000	6591000	7153000

Liabilities & Shareholders' Equity	2015	2016	2017	2018
ST Debt & Current Portion LT Debt	141000	80600	69500	56100
Short Term Debt	30000	75000	67000	0
Current Portion of Long Term Debt	111000	56000	25000	56100
Accounts Payable	660000	786000	904000	101000
Income Tax Payable	-	-	-	-
Other Current Liabilities	307000	329000	405000	477000
Dividends Payable	-	-	-	-
Accrued Payroll	-	-	-	-
Miscellaneous Current Liabilities	307000	329000	405000	477000
Total Current Liabilities	1107000	1196000	1379000	1543000
Long-Term Debt	865000	921000	913000	1284000
Long-Term Debt excl. Capitalized Leases	850000	904000	898000	125000
Non-Convertible Debt	850000	904000	898000	125000
Convertible Debt	0	0	0	0
Capitalized Lease Obligations	15100	16800	15100	34400
Provision for Risks & Charges	0	0	0	0
Deferred Taxes	366000	385000	378000	388000
Deferred Taxes - Credit	366000	385000	378000	390000
Deferred Taxes - Debit	0	0	0	2300
Other Liabilities	106000	145000	150000	142000
Other Liabilities (excl. Deferred Income)	106000	145000	150000	142000
Deferred Income	-	-	-	-
Total Liabilities	2444000	2646000	2821000	3359000
Non-Equity Reserves	0	0	0	0
Preferred Stock (Carrying Value)	0	0	0	0
Redeemable Preferred Stock	0	0	0	0
Non-Redeemable Preferred Stock	0	0	0	0
Common Equity (Total)	377000	380500	377000	379400
Common Stock Par/Carry Value	1600	1600	1700	1700
Retained Earnings	193000	220900	250500	284900
ESOP Debt Guarantee	0	0	0	0
Cumulative Translation Adjustment/Unrealized For. Exch. Gain	(1100)	(2000)	(1600)	(4300)
Unrealized Gain/Loss Marketable Securities	0	0	0	0
Revaluation Reserves	0	0	0	0
Treasury Stock	(903000)	(119500)	(162700)	(201700)
Total Shareholders' Equity	377000	380500	377000	379400
Accumulated Minority Interest	3400	3000	0	0
Total Equity	377300	380800	377000	379400
Liabilities & Shareholders' Equity	621700	645400	659100	715300

Conclusions and Recommendations

Starting our own medical courier service is a great way of easing into the world of entrepreneurship. Delivery services have very little overhead and an array of ways for determined business owners to make money. Not just hospitals and clinics use medical supplies. Hundreds of people order supplies or need certain items delivered to them daily. The sooner we start the more profit we can make and if we wait someone may take our idea and gain great successful from it. Firstly capital need to be gathered in order to start purchasing supplies as we already possess an ideal location on Spanish town road and create our website and develop wireless computer systems.

Since we have analysed the market, customer, and promotion. Price, product and competition. We should start promoting the business so our targeted market can be informed about the business and work towards satisfying the needs and wants of the consumers in a profitable way.

Secondary information sources

The Jamaica Pharmacists’ Association; About the Pharmaceutical Society of Jamaica, retrieved October 6, 2015 from; http://pharmasocietyjamaica.com/about-pharmaceutical-society-ja/

The Pharmacy Council of Jamaica; the Ministry of Health with responsibilities for the regulation of pharmacists, pharmaceutical students, pharmacy owners and authorized sellers of poisons in accordance with The Pharmacy Act (1966), retrieved October 6, 2015 from; http://www.pcoj.org/aboutUs.htm

NEPA; Policies & Procedures of the Pharmacy Council of Jamaica retrieved October 6, 2015 from; www.nepa.gov.jm/.../Section/Procedures...

Ministry of justice; THE PHARMACY ACT, retrieved October 6, 2015 from; moj.gov.jm/sites/default/files/laws/Pharmacy

Yellow Pages; Jamaica Kingston Pharmacies, retrieved October 6, 2015 from; jamaicayp.com/Jamaica-Kingston/Pharmacies

 William James, How Much Money Is Required to Start a Pharmacy? Demand Media 2014, retrieved October 6, 2015 from; http://smallbusiness.chron.com/much-money-required-start-pharmacy-12266.html

Appendix

Company logos